Restructuring Process TMON Prepares to Relaunch Site Next Month... Can It Revive Hope?

Timon, which has entered rehabilitation proceedings, has begun preparations to restart its site. The goal is to resume sales early next month. Restarting the site is essential for compensating affected sellers and for the mergers and acquisitions (M&A) that Timon is pursuing. However, restoring consumer trust, which plummeted due to the unsettled payment incident, remains a challenge. Participation from credit card companies is also insufficient.

According to the e-commerce industry on the 26th, Timon ended its work-from-home arrangement, which had continued since the prosecution's raid early last month, and recently employees have returned to the headquarters to accelerate preparations for platform relaunch. Timon received a decision to commence rehabilitation proceedings from the Seoul Bankruptcy Court on the 10th of this month. Jo In-cheol, former executive director at SC First Bank, was appointed as the court-appointed manager, and Han Young Accounting Corporation was appointed as the investigation committee. Following this, Timon must submit a rehabilitation plan by December 27 after the creditor registration process, with the company aiming to pursue M&A before the court approves the rehabilitation plan.

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Site relaunch is necessary not only for M&A but also for compensating victims. To this end, Timon conducted a high-intensity organizational restructuring this month, establishing financial and technology development teams within the company to secure a foundation as an independent platform. Previously, Timon's finance and technology development were handled by Qoo10 Technology, and it had no in-house teams.

Timon is also lowering the entry barriers for sellers through its merchandise planning (MD) team to secure sellers. It offers escrow-based safe and fast settlements, free participation fees for deals, and waives advertising fees that were previously charged based on the previous month's sales. In particular, it is focusing on establishing an escrow-based settlement system to restore the platform’s trust, which had fallen to rock bottom. Customers' payment funds are safely held by financial institutions and settlements are made the day after purchase confirmation.

However, even if sellers join and consumers revisit, cooperation from credit card companies is necessary for the site to operate fully. According to industry sources, credit card companies are currently not participating in Timon's site relaunch. An industry insider said, "Participation from credit card companies, which are essential payment methods, is insufficient. Their participation is essential for a full site reopening."

One seller, considering resuming transactions despite unsettled payments, said, "Even if product sales start, credit card companies, which are the payment method customers use, need to participate, but it is a frustrating situation where nothing can be done." They added, "For Timon to receive a higher value during the M&A process, site normalization is necessary. Only then can affected sellers recover some of their unsettled payments."

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